Quant Macro Investing

Risk Taking Disciplined

Exotic Bets to Hedge a Portfolio

NY Times

WHEN the global markets plummeted after Lehman Brothersdeclared bankruptcy in September last year, a handful of alternativeinvestments remained stable or even made money for investors. Among them were “managed futures,” which are not for everybody.

Managed futures use computer-driven trading models that can go either long — that is, betting on rising prices — or short, betting that prices will fall, in a variety of futures contracts.

 

http://www.nytimes.com/2009/10/29/your-money/stocks-and-bonds/29FUND.html

 

October 30, 2009 - Posted by | ABCs for Quant

1 Comment »

  1. like many computer-managed fund and investment, Managed future should outperform the market when the market is down while underperform the market when the market is bull. In the upcoming market environment, it may not be a good decison to rely our investment of these alternative investments, but they good tool to diversify our portfolio.

    Comment by cpl | November 3, 2009 | Reply


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